Apollo Hospitals Sees Significant Open Interest Surge Amid Steady Price Gains

Open Interest Spike and Volume Dynamics

On 23 Feb 2026, Apollo Hospitals (symbol: APOLLOHOSP) recorded an open interest (OI) of 60,116 contracts, up sharply by 8,501 contracts or 16.47% from the previous day’s 51,615. This notable increase in OI is accompanied by a futures volume of 36,722 contracts, reflecting active participation in the derivatives market. The combined futures and options value stands at approximately ₹15,241 crores, underscoring the substantial capital flow around this large-cap hospital stock.

The underlying stock price closed at ₹7,661, registering a 0.62% gain on the day, outperforming the hospital sector’s 0.34% rise and the Sensex’s 0.44% advance. The stock has been on a two-day consecutive gain streak, delivering a cumulative return of 0.98% during this period. Notably, Apollo Hospitals is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bullish trend.

Market Positioning and Investor Behaviour

The surge in open interest alongside rising prices typically indicates fresh long positions being established, suggesting that market participants are betting on further upside. However, the delivery volume on 20 Feb was 1.82 lakh shares, down by nearly 38% compared to the 5-day average, indicating a decline in investor participation at the cash level. This divergence between derivatives activity and cash market delivery volumes may imply that traders are increasingly relying on leveraged instruments to express their views rather than outright stock purchases.

Liquidity remains adequate, with the stock’s traded value supporting a trade size of approximately ₹5.79 crores based on 2% of the 5-day average traded value. This liquidity profile favours active trading and efficient price discovery in both cash and derivatives markets.

Mojo Score and Rating Revision

Apollo Hospitals currently holds a Mojo Score of 55.0, reflecting a moderate outlook with a Mojo Grade of Hold. This represents a downgrade from its previous Buy rating as of 9 Jan 2026. The downgrade reflects a cautious stance amid evolving market conditions, despite the stock’s recent positive momentum. The company’s market capitalisation stands at a robust ₹1,10,029 crores, categorising it firmly as a large-cap stock within the hospital sector.

While the downgrade signals some reservations, the stock’s technical strength and open interest surge suggest that traders remain optimistic about near-term prospects. The hospital sector’s steady performance and Apollo’s leadership position provide a solid backdrop for potential further gains.

Directional Bets and Potential Market Implications

The sharp rise in open interest, coupled with rising prices and volume, indicates that market participants are positioning for a bullish scenario. This could be driven by expectations of strong quarterly results, favourable policy developments, or sectoral tailwinds such as increased healthcare spending and rising demand for hospital services.

However, the falling delivery volumes caution that retail investor enthusiasm may be waning, with institutional and proprietary traders possibly dominating the derivatives space. This shift in market composition can lead to increased volatility and rapid price adjustments as positions are built or unwound.

Investors should monitor upcoming earnings announcements and sector news closely, as these will likely influence the sustainability of the current trend. Additionally, the stock’s ability to maintain its position above key moving averages will be critical in confirming the bullish momentum.

Comparative Performance and Sector Context

Relative to its hospital sector peers, Apollo Hospitals has outperformed modestly, gaining 0.62% on the day versus the sector’s 0.34%. This outperformance is notable given the sector’s generally steady but unspectacular returns in recent weeks. The Sensex’s 0.44% gain on the same day further highlights Apollo’s relative strength.

The stock’s narrow trading range of ₹64.5 on the day suggests consolidation, which often precedes a breakout move. The sustained trading above all major moving averages reinforces the technical case for continued strength, provided that volume and open interest trends remain supportive.

Investors should also consider the broader macroeconomic environment, including inflation trends, interest rate policies, and healthcare sector reforms, which could impact hospital stocks’ valuations and earnings trajectories.

Outlook and Investment Considerations

Given the current market positioning, Apollo Hospitals appears poised for potential upside, supported by strong derivatives activity and technical momentum. However, the Hold rating and Mojo Score of 55.0 suggest that investors should exercise caution and monitor developments closely.

Key factors to watch include quarterly earnings results, changes in open interest and volume patterns, and sectoral news that could influence investor sentiment. The divergence between derivatives market enthusiasm and declining delivery volumes warrants attention, as it may signal a shift in market dynamics.

Overall, Apollo Hospitals remains a significant player in the hospital sector with solid fundamentals and liquidity, making it a stock to watch for both traders and long-term investors seeking exposure to healthcare services in India.

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